ONGC offers JV in exploration blocks to ExxonMobil

New Delhi: Oil and Natural Gas Corp (ONGC) has offered energy giant ExxonMobil a participating interest in about half a dozen exploration blocks, sources with knowledge of deliberations told ET. The blocks are on the east and west coasts. ONGC recently wrote to ExxonMobil, asking if it would like to be a joint venture partner in exploration acreages in Cauvery basin and Mumbai offshore, said one of the persons.
Exxon is likely to take a view after studying geological data, and a deal may take some time. ONGC is expected to offer a significant minority stake to Exxon in these blocks. It is also looking at partnering ExxonMobil in some of its difficult producing fields, as well as jointly bidding for exploration acreages in new rounds.

Realising Production Potential
ONGC signed a preliminary agreement with ExxonMobil in October 2019 that proposed joint technical studies and cooperation in difficult oil fields, the Indian firm’s existing exploration blocks and joint bidding for new acreages.

ONGC is conceptualising the collaboration with Exxon to realise production potential in difficult fields by drawing on the latter’s technical expertise in dealing with similar plays elsewhere, another person said. However, the contours of possible partnership in producing fields located in difficult terrain are unclear. It could involve Exxon acquiring a participating interest in the field, a share in the enhanced output, or just seeking a fee for the service provided, he said.